Huge Payroll Taxes Discrepancy

[antiochmbc]

Is there any way to correct erroneous figures on the balance sheet? I ran a balance sheet for 2024 and the payroll expense figures doesn't even come close to my Tax Deposit Report. What can be done to correct??

[sgbani]

I would first do a few payroll reports, in particular:
Employee Pay items
Selected Payroll Data
and/or quarterly report.

I would do it one quarter at a time evaluation as to why your tax deposit report for withholding, social security, medicare differ.
Do you pay your tax deposit monthly or quarterly?

In terms of the balance sheet, why do you have an error? What value is erroneous? Is it the payroll liability account?
Do you have a large amount in the payroll liability on the balance sheet?
When you pay the IRS your tax deposit, do you debit the payroll liability account (and credit the bank account)?
If you have a payroll liability account, you should not be off by more than one payment session. For us, we pay monthly, and I always do the tax deposit in the same month as payroll, so that my net payroll liability is zero on the balance sheet every month. However, if I had to do the deposit the next month for some reason, my balance sheet would only show one month's amount as a liability.

If you have a tax deposit for the quarter <$2,500, then I believe you may only have to pay quarterly, so that means the balance sheet should only ever have at most a payroll liability amount equal to a quarter's values.

If you do a balance sheet for every month (Dec, Nov, Oct, etc.) do those balance sheets look correct?

[NeilZ]

Is there any way to correct erroneous figures on the balance sheet? I ran a balance sheet for 2024 and the payroll expense figures doesn't even come close to my Tax Deposit Report. What can be done to correct??

Exactly what is wrong? Are you saying that the payroll expenses do not equal what the W3 shows for total payroll? What are you including as payroll expenses? If you're including any housing allowance, that will not show up on the tax report, as housing is not taxable for income tax. That said, it should be listed on the W2 as a note in Block 14 (I believe) for the SECA tax paid by the minister.